The blue and green boxes on this chart represent critical buying zones, identified using a blend of advanced technical analysis techniques. These zones indicate areas where strong buying pressure is expected, making them ideal for potential long positions. Below is a detailed breakdown of their significance and trading approach:
1. The Concept of Buying Zones Buying zones are price regions where a reversal or bounce to the upside is likely. These zones are derived from significant support levels and historical price reactions.
Blue Boxes: These are primary buying zones, indicating areas with the highest confidence of support. They are often identified from higher timeframes, such as daily or 4-hour charts, and reflect strong confluence levels like Fibonacci retracements or key order blocks.
Green Boxes: These are secondary buying zones, providing additional opportunities but with slightly lower confidence. These zones typically stem from intraday price action and minor structural support levels.
2. How Are These Zones Determined?
The buying zones are meticulously drawn using the following methods:
Fibonacci Levels: Focused on 0.618–0.786 retracement areas for strong support.
Order Blocks: Highlighting the last bullish or bearish candle before an impulsive price move.
Volume Profile: Identifying high-volume nodes, which often act as significant price magnets.
Market Structure: Analyzing higher highs and higher lows to define areas of structural support.
3. How to Trade the Zones
When the price enters these buying zones, here’s how to approach it:
Blue Box – High-Confidence Trade:
Monitor for confirmation signals such as bullish candlestick patterns (e.g., engulfing or pin bars).
Place stop-loss orders just below the zone’s boundary to minimize risk.
Green Box – Lower Priority Trade:
Use tighter stop-losses and wait for stronger intraday confirmations, like breakouts from local resistance.
Be mindful of higher risks as these zones are not as robust as blue boxes.
4. Additional Confirmation Signals
Strengthen your entries by combining these signals:
Bullish Divergences: Look for RSI or MACD divergences aligning with the zones.
Volume Spikes: A sharp increase in volume near the zones indicates institutional interest.
Reclaim of Key Levels: A break above nearby resistance after bouncing from the zone confirms upward momentum.
5. Example Scenarios
Scenario 1: Price enters the blue box and forms a bullish engulfing candle. Enter a long position, set a stop-loss below the zone, and target the next resistance level.
Scenario 2: Price dips into the green box but holds above the lower boundary. Wait for consolidation and a breakout before entering.
I keep my charts clean and simple because I believe clarity leads to better decisions.
My approach is built on years of experience and a solid track record. I don’t claim to know it all, but I’m confident in my ability to spot high-probability setups.
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